What’s in Today’s Report:
- An Important Technical Level to Watch
Futures are slightly higher despite disappointing economic data and a greater than expected rate hike from another foreign central bank.
June flash PMIs were mixed as the EU flash Composite PMI dropped sharply (51.9 vs. (E) 54.0) while the UK flash Composite PMI slightly beat estimates (53.1 vs. (E) 52.7).
The Norges Bank (Central Bank of Norway) became the latest central bank to hike more than expected (50 bps vs. 25 bps).
Today’s focus will be on economic data via the Flash Composite PMI (E: 56.3) and Jobless Claims (E: 225K), and the market will be looking for moderation in the data (small declines that imply Fed hikes are working, but not drastic declines that imply economic growth is careening off a cliff). We also get the second half of Powell’s Congressional Testimony before the House Financial Services Committee, but that shouldn’t yield any surprises.
Finally, oil continues to be one of the most important short-term market influences. If oil can fall further, that will put a tailwind on stocks.